KUALA LUMPUR, February 4 — The new minimum wage of RM1,700 officially comes into effect today, benefiting 4.37 million workers across Malaysia. This increase from RM1,500 applies to employers with five or more workers and professional sector employers regardless of workforce size. For businesses with fewer than five employees, the adjustment will be enforced starting August 1 to allow for necessary operational changes.
Employers must comply with the revised Minimum Wage Order, as non-compliance is an offence under the National Wages Consultative Council Act 2011. The Ministry of Human Resources (KESUMA) emphasized that the wage revision is part of broader efforts to enhance worker earnings and economic well-being, alongside policies such as the Progressive Wage Policy and skills training initiatives.
However, KESUMA clarified that the new minimum wage should not serve as a benchmark for entry-level salaries for graduates and skilled workers, who should be paid based on their qualifications and expertise. The wage hike aligns with Prime Minister Datuk Seri Anwar Ibrahim’s Budget 2025 vision for economic restructuring and improved living standards.
